Balance Sheet & Income Statement For Hospital PDF

Fortis Hospitals Limited
Balance Sheet as at March 31, 2015
Notes March 31, 2015 March 31, 2014

` in lacs ` in lacs
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 4 (i) 4,030.06 4,030.06
Reserves and surplus 4 (ii) 44,701.03 53,630.74
48,731.09 57,660.80
Non-current liabilities
Long-term borrowings 4 (iii) 23,768.29 16,073.90
Deferred tax liabilities (net) 4 (iv) 1,520.40 5,624.47
Other long term liabilities 4 (v) 1,213.38 1,061.91
Long-term provisions 4 (vi) 987.29 814.00
27,489.36 23,574.28
Current liabilities
Short-term borrowings 4 (vii) 81,081.60 70,686.17
Trade payables 4 (viii) 27,456.05 26,807.70
Other current liabilities 4 (ix) 26,885.61 28,161.80
Short-term provisions 4 (x) 1,089.88 756.47
136,513.14 126,412.14
TOTAL 212,733.59 207,647.22

ASSETS
Non-current assets
Fixed assets
Tangible assets 4 (xi) (a) 59,117.99 64,727.16
Intangible assets 4 (xi) (b) 46,942.91 48,878.83
Capital work-in-progress 5,434.22 1,615.30
Non-current investments 4 (xii) 8,359.71 634.71
Long-term loans and advances 4 (xiii) 39,564.15 42,671.04
Other non-current assets 4 (xiv) 1,284.44 911.90
160,703.42 159,438.94
Current assets
Inventories 4 (xv) 1,880.52 2,219.87
Trade receivables 4 (xvi) 17,417.75 20,409.98
Cash and bank balances 4 (xvii) 1,937.43 8,062.20
Short-term loans and advances 4 (xviii) 25,282.99 13,767.30
Other current assets 4 (xix) 5,511.48 3,748.93
52,030.17 48,208.28
TOTAL 212,733.59 207,647.22
Summary of significant accounting policies 3
The accompanying notes are an integral part of the financial statements
As per our report of even date
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Firm Registration Number: 301003E Fortis Hospitals Limited
Chartered Accountants
Ashish Bhatia Gagandeep Singh Bedi

per Sandeep Sharma Whole Time Director Director
Partner DIN: 01845421 DIN: 06881468
Membership No.: 93577
Meetu Gulati Rakesh Laddha

Company Secretary Chief Financial Officer
Membership No.: A24618
Place : Gurgaon Place : Gurgaon

Date : May 27, 2015 Date : May 27, 2015
Statement of Profit and loss for the year ended March 31, 2015
Notes March 31, 2015 March 31, 2014

` in lacs ` in lacs
INCOME
Revenue from operations 4 (xx) 195,388.99 180,108.24
Other income 4 (xxi) 5,129.73 8,107.42
Total revenue 200,518.72 188,215.66
EXPENSES
Purchase of medical consumables and drugs 37,033.66 37,059.93
Increase in inventories of medical consumables and drugs 4 (xxii) 184.42 249.39
Employee benefits expense 4 (xxiii) 25,312.73 23,145.00
Other expenses 4 (xxiv) 127,351.95 117,540.19
Total expenses 189,882.76 177,994.51
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,635.96 10,221.15
Finance costs 4 (xxv) 15,030.81 14,446.85
Loss before tax, depreciation and amortization (4,394.85) (4,225.70)
Depreciation and amortization expense 4 (xxvi) 8,951.53 7,360.30
Loss before exceptional items and tax (13,346.38) (11,586.00)
Exceptional items 4 (xxvii) 862.59 -
Loss before tax (12,483.79) (11,586.00)
Tax expenses:
Current tax [including reversal of tax for earlier year Nil (previous year ` - (2,723.95)
2,723.95 lacs) (refer note 22)]
Deferred tax credit (3,917.13) (3,155.16)
Total tax expenses (3,917.13) (5,879.11)
Loss for the year (8,566.66) (5,706.89)
Loss per share [Nominal value ` 10/- each (Previous year ` 10/- each)] 4 (xxviii)
Basic (21.26) (14.16)

Diluted (21.26) (14.16)
The accompanying notes are an integral part of the financial statements
per Sandeep Sharma Ashish Bhatia Gagandeep Singh Bedi

Partner Whole Time Director Director
Membership No.: 93577 DIN: 01845421 DIN: 06881468
Meetu Gulati Rakesh Ladda


Date : May 27, 2015 Date : May 27, 2015
Cash Flow Statement for the year ended March 31, 2015
March 31, 2015 March 31, 2014

Particulars
` in lacs ` in lacs
Cash flow from operating activities
Loss before tax and exceptional items (13,346.38) (11,586.00)
Adjustments for:
Depreciation and amortisation expense 8,951.53 7,360.30
Loss on sale of assets 109.05 65.43
Profit on sale of mutual fund (164.80) (185.94)
Provision for doubtful debts 2,763.23 2,393.18
Provision for doubtful advances 1,985.53 109.15
Provision for contingencies 164.52 8.27
Bad debts and sundry balances written off 152.39 602.50
Finance charges 111.03 136.99
Unrealised foreign exchange fluctuation loss (net) - 7.98
Unclaimed balances and excess provisions written back (623.53) (123.70)
Wealth tax 7.95 4.64
Interest income (4,926.21) (7,838.39)
Dividend income - (58.76)
Interest expense 14,439.50 13,840.75
Operating profit before working capital changes 9,623.81 4,736.40
Movements in working capital :
Increase in trade receivables (752.73) (4,881.39)
Decrease in inventories 163.25 220.86
Increase in loans and advances (4,555.50) (67.97)
Increase in other assets (794.04) (826.57)
Increase in trade payables, other liabilities and provisions 6,197.66 2,537.49
Cash generated from operations 9,882.45 1,718.82
Direct taxes paid (net of refunds) (5,698.06) (5,349.28)
Net cash flow from/ (used in) operating activities (A) 4,184.39 (3,630.46)
Cash flows from investing activities

Purchase of fixed assets (15,116.35) (36,861.46)
Proceeds from sale of fixed assets 5,179.62 168.39
Redemption/ maturity/ (deposit) of bank deposits (125.50) 517.66
Loans to body corporates and others (given)/ repayments received (net) (628.37) 36,563.08
Loans to subsidiaries and fellow subsidiaries (given)/ repayments received (net) (1,008.95) 9,426.92
Purchase of investments in subsidiaries (7,725.00) (333.80)
Proceeds from sale of mutual funds 164.80 8,693.44
Proceeds from sale of division (total sale consideration) 4,000.00 -
Interest received 3,301.81 10,284.29
Dividend received - 58.76
Net cash flow from/ (used in) investing activities (B) (11,957.94) 28,517.28
Cash flows from financing activities

Proceeds from long-term borrowings 12,064.62 6,524.55
Repayments of long-term borrowings (6,608.84) (7,721.66)
Proceeds/ (Repayment) of short-term borrowings (net) 9,642.72 (1,485.57)
Loan arrangement fees paid (63.75) (128.09)
Interest paid (13,422.91) (16,743.81)
Net cash flow from/ (used in) financing activities (C) 1,611.84 (19,554.58)
Net increase/ (decrease) in cash and cash equivalents (A + B + C) (6,161.71) 5,332.24

Cash Flow Statement for the year ended March 31, 2015
March 31, 2015 March 31, 2014

Particulars
` in lacs ` in lacs
Total cash and cash equivalents at the beginning of the year 8,010.85 1,968.47
Addition of Cash and cash equivalents on account of amalgamation (refer note 22) - 710.14
Reduction of Cash and cash equivalents on sale of business division (refer note 19) (21.22) -
Cash and cash equivalents at the end of the year 1,827.92 8,010.85
Components of cash and cash equivalents:

Cash in hand 353.46 421.50
Cheques in hand 40.51 62.56
Balances with banks on current accounts 961.55 7,525.79
Bank deposits with original maturity of less than 3 months 472.40 1.00
Total cash and cash equivalents 1,827.92 8,010.85
Note: The amalgamation of Fortis Health Management (North) Limited with the Company in the previous year (refer note 22) is a non cash transaction
and hence, has no impact on the Company's cash flows for curent as well as previous year.

Membership No.: 93577 DIN: 01845421 DIN: 06881468


Date : May 27, 2015 Date : May 27, 2015
Notes to financial statements for the year ended March 31, 2015
1. Nature of Operations
Fortis Hospitals Limited (the ‘Company’ or ‘FHsL’) was incorporated on June 18, 2009 as a wholly owned
subsidiary of Fortis Healthcare Limited (‘FHL’) to carry on the business of promotion, maintenance,
management, operation and conduct of healthcare and related services and providing consultancy for
establishment of healthcare services. During the previous year, Fortis Health Management (North) Limited
(another subsidiary of FHL) has been amalgamated with the Company, for further details refer note 22.
2. Basis of preparation
The financial statements of the Company have been prepared in accordance with the generally accepted
accounting principles in India (Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified under section 133 of the Companies
Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial
statements have been prepared on an accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial statements are consistent with those of
previous year, except for the changes in accounting policies explained below.
3. Summary of Significant Accounting Policies
a. Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to
make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period.
Although these estimates are based on the management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.
Change in Estimate
Till the year ended March 31, 2014, depreciation was being provided as per rates prescribed under
Schedule XIV of the Companies Act, 1956. Schedule II to the Companies Act 2013 prescribes useful lives
for fixed assets which, in many cases, are different from lives prescribed under the erstwhile Schedule
XIV. However, Schedule II allows companies to use higher/ lower useful lives and residual values if such
useful lives and residual values can be technically supported and justification for difference is disclosed in
the financial statements.
Considering the applicability of Schedule II, the management has re-estimated useful lives and residual
values of all its fixed assets. The management believes that depreciation rates currently used fairly reflect
its estimate of the useful lives and residual values of fixed assets.
Where the asset has zero remaining useful life on the date of Schedule II becoming effective, i.e., April 01,
2014, its carrying amount, after retaining any residual value, is charged to the opening balance of surplus
in the statement of profit and loss, as a result an amount of ` 363.05 lacs (net of deferred tax credit
amounting to ` 186.95 lacs) has been charged to the opening balance of surplus in the statement of profit
and loss. The carrying amount of other assets whose remaining useful life is not nil on April 01, 2014, is
depreciated over their revised remaining useful life.
Had the Company continued to depreciate the assets at the earlier rates, depreciation and loss for the year
would have been lower by ` 1,276.69 lacs.
b. Tangible fixed assets
Fixed assets are stated at cost (or fair value, in case of acquisitions under slump sale) less of accumulated
depreciation and impairment loss, if any. The cost comprises purchase price, borrowing costs if
capitalization criteria are met and directly attributable cost of bringing the asset to its working condition
for the intended use.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the
future benefits from the existing asset beyond its previously assessed standard of performance. All other
expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit and loss for the period during which such expenses
are incurred.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and
loss when the asset is derecognized.
c. Depreciation on tangible fixed assets
i. Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the
useful lives estimated by the management. The Company has used the following useful lives to
provide depreciation on its fixed assets.
Assets Useful Lives

Building 30 Years
Plant and Machinery 15 years
Medical Equipment 13 years
Computers 3 years
Furniture and fittings 10 years
Office equipments 5 years
Vehicles 8 years
ii. Depreciation on Leasehold improvements is provided over the primary period of lease or over the
useful lives of the respective fixed assets, whichever is shorter.
iii. Buildings constructed over the land under lease are depreciated over the shorter of estimated life or
lease period.
Changes in Accounting Policies
i. Till year ended March 31, 2014, to comply with the requirements of Schedule XIV to the Companies
Act, 1956, the Company was charging 100% depreciation on assets costing less than `5,000/- in the
year of purchase. However, Schedule II to the Companies Act 2013, applicable from the current year,
does not recognize such practice. Hence, to comply with the requirement of Schedule II to the
Companies Act, 2013, the Company has changed its accounting policy for depreciations of assets
costing less than `5,000/-. As per the revised policy, the Company is depreciating such assets over
their useful life as assessed by the management. The management has decided to apply the revised
accounting policy prospectively from accounting periods commencing on or after 1 April 2014.
The change in accounting for depreciation of assets costing less than `5,000/- did not have any
material impact on financial statements of the Company for the current year.
ii. The Company was previously not identifying components of fixed assets separately for depreciation
purposes; rather, a single useful life/ depreciation rate was used to depreciate each item of fixed asset.
Due to application of Schedule II to the Companies Act, 2013, the Company has changed the manner
of depreciation for its fixed assets. Now, the Company identifies and determines separate useful life
for each major component of the fixed asset, if they have useful life that is materially different from
that of the remaining asset. This change in accounting policy did not have any material impact on
financial statements of the Company for the current year.
d. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in an amalgamation in the nature of purchase is their fair value as at the date of
amalgamation. Following initial recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding
capitalized development costs which meet capitalization criteria, are not capitalized and expenditure is
reflected in the statement of profit and loss in the year in which the expenditure is incurred.
Intangible assets are amortized on a straight line basis over the estimated useful economic life.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit
and loss when the asset is derecognized.
Goodwill
Goodwill arising on acquisition is recognized based on the difference between the purchase consideration
and assets acquired during acquisition. The same is carried at cost and tested for impairment on an accrual
basis in accordance with impairment policy stated below.
Software
Cost of software is amortized over a period of 6 years, being the estimated useful life as per the
management estimates.
Non-compete fees
Non-compete fee which is valued based on the incremental cash flows attributable to the non-compete
covenant entered during the acquisition of business is capitalized and amortised over an estimated useful
period of 3-5 years over which the benefits are likely to accrue, on a straight line basis.
Licence fee
License fees represents fees paid pursuant to Name User Agreement that entitles the Company for carrying
on business. The amount paid has been capitalised and amortized over the useful life or 10 years,
whichever is shorter.
e. Borrowing cost
Borrowing cost includes interest, amortisation of ancillary costs incurred in connection with the
arrangement of borrowings.
Borrowing costs directly attributable to the acquisitions, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part
of the cost of the respective assets. All other borrowing costs are expensed in the year they occur.
f. Impairment of tangible and intangible assets
i. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of
impairment based on internal/ external factors. An impairment loss is recognised wherever the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of
the asset’s net selling price and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessment of the time value of money and risk specific to asset. This rate is estimated from the rate
implicit in current market transactions for similar assets or from the weighted average cost of capital
of the Company. Impairment losses are recognised in statement of profit and loss.
ii. After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.
iii. An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists,
the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously
recognized impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal
is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed
the carrying amount that would have been determined, net of depreciation, had no impairment loss
been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and
loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a
revaluation increase.
iv. The cash-generating unit to which goodwill has been allocated is tested for impairment annually and
whenever there is an indication that the cash-generating unit may be impaired. Impairment is
determined for goodwill by assessing the recoverable amount of each cash-generating unit (or group
of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-
generating unit is less than the carrying amount, an impairment loss is recognized in the statement of
profit and loss.
g. Leases
Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased items are classified as operating leases. Operating lease payments are recognised as an expense in
the statement of profit and loss on a straight-line basis over the lease term.
Leases where the lessor effectively transfers substantially all the risks and benefits of ownership of the
asset are classified as finance leases and are capitalized at the inception of the lease term at the lower of the
fair value of the leased property and present value of minimum lease payments. Lease payments are
apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the
statement of profit and loss. Lease management fees, legal charges and other initial direct costs of lease are
capitalized.
Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the
asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease
income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over
the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and
loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the
statement of profit and loss.
h. Investments
Investments that are readily realisable and intended to be held for not more than a year from the date on
which such investments are made, are classified as current investments. All other investments are
classified as long-term investments. Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other than temporary in the value of the
long term investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is
charged or credited to the statement of profit and loss.
i. Inventories
Inventories of medical consumables, drugs, linen and stores and spares are valued at lower of cost or net
releasable value. Cost is determined on First in First Out (‘FIFO’) basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
The inventories of medical consumables in OPD business are expensed off on purchase.
j. Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. The following specific recognition criteria must also be met
before revenue is recognized:
Operating Income
Operating income is recognised as and when the services are rendered / pharmacy items are sold.
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the
goods have been passed to the buyer, usually on delivery of the goods. The Company collects sales taxes
and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits
flowing to the Company. Hence, they are excluded from revenue.
Management fee from hospitals and income from medical services is recognised as and when the
contractual obligations arising out of the contractual arrangements with respective hospitals are fulfilled.
Income from Satellite Centers

Income from satellite centres is recognised on accrual basis in accordance with the terms of respective
agreements entered into in respect thereof.
Income from Clinical Research

Income from clinical research is recognised as and when the services are rendered in accordance with the
terms of the respective agreements.
Income from Sponsorships

Sponsorship income is recognized when the underlying obligations are completed as per contractual terms.
Income from Academic Services

Revenue is recognized on pro-rata basis on the completion of such services over the duration of the
program.
Equipment Lease Rentals and Income from Rent

Revenue is recognised in accordance with the terms of lease agreements entered into with the respective
lessees on straight line basis.
Export benefits
Income from ‘Served from India Scheme’ is recognized on accrual basis as and when eligible services are
performed and convertible foreign exchange is received on a net basis.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and
the applicable interest rate. Interest income is included under the head “other income” in the statement of
profit and loss.
k. Unamortised finance charges
Costs incurred in raising funds are amortised on straight line basis over the period for which the funds
have been obtained, using time proportionate basis.
l. Foreign Currency Transaction
i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at the date
of the transaction.
ii) Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting
date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at the date of the transaction. Non-monetary items,
which are measured at fair value or other similar valuation denominated in a foreign currency, are
translated using the exchange rate at the date when such value was determined.
iii) Exchange differences

The Company accounts for exchange differences arising on translation/ settlement of foreign currency
monetary items as below:
(a) Exchange differences arising on a monetary item that, in substance, forms part of the Company’s
net investment in a non-integral foreign operation is accumulated in the foreign currency
translation reserve until the disposal of the net investment. On the disposal of such net investment,
the cumulative amount of the exchange differences which have been deferred and which relate to
that investment is recognized as income or as expenses in the same period in which the gain or
loss on disposal is recognized.
(b) Exchange differences arising on long-term foreign currency monetary items related to acquisition
of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.
(c) Exchange differences arising on other long-term foreign currency monetary items are accumulated
in the “Foreign Currency Monetary Item Translation Difference Account” and amortized over the
remaining life of the concerned monetary item.
(d) All other exchange differences are recognized as income or as expenses in the period in which
they arise.
For the purpose of b and c above, the Company treats a foreign monetary item as “long-term foreign
currency monetary item”, if it has a term of 12 months or more at the date of its origination. In
accordance with MCA circular dated August 09, 2012 exchange differences for this purpose are total
differences arising on long-term foreign currency monetary items for the period. In other words, the
Company does not differentiate between exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the interest cost and other exchange
difference.
m. Retirement and other employee benefits
i) Contribution to provident fund

The Company makes contributions to statutory provident fund in accordance with Employees Provident
Fund and Miscellaneous Provisions Act, 1952. Provident Fund is a defined contribution scheme for certain
employees, the contributions for these employees are charged to the Statement of profit and loss of the
year when an employee renders the related service.
For other employees, the provident fund is defined benefit scheme contribution of which is being deposited
with “Fortis Healthcare Limited Provident Fund Trust” managed by the Fortis Healthcare Limited, the
holding company (‘FHL’); such contribution to the trust additionally requires FHL to guarantee payment
of interest at rates notified by the Central Government from time to time, for which shortfall, if any has to
be provided for as at the balance sheet date by FHL. There are no other obligations other than the
contribution payable to the fund.
ii) Gratuity
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation
made at the end of the year using projected unit credit method.
iii) Compensated absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-
term employee benefit for measurement purposes. Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit credit method at the year-end. The Company
presents the leave as a current liability in the balance sheet; to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting date.
iv) Actuarial gain/ losses

Actuarial gains/losses are recognised in the Statement of Profit and Loss as they occur.
n. Income Taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current
income tax relating to items recognized directly in equity is recognized in equity and not in the statement
of profit and loss.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realized. In situations where
the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing evidence that they can be realized
against future taxable profits.
At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes
unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available against which such deferred tax
assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down
the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available against which deferred
tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain
or virtually certain, as the case may be, that sufficient future taxable income will be available
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off
current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the
same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax.
The Company recognizes MAT credit available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for
which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of
Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT
credit entitlement” asset at each reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the specified period.
o. Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year (including prior
period items, if any) attributable to the equity shareholders (after deducting attributable taxes, if any) by
the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, net profit or loss for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
p. Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not
discounted to its present value and are determined based on the best estimate required to settle the
obligation at the reporting date. These estimates are reviewed at each balance sheet date and adjusted to
reflect the current best estimates.
q. Cash and Cash Equivalents
Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short term
investments with an original maturity of three months or less at the date of acquisition.
r. Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956 (now
Schedule III to the Companies Act, 2013), the Company has elected to present earnings before interest,
tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit
and loss. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its
measurement, the Company includes interest income included under other income, but does not include
depreciation and amortization expense, finance costs and tax expense.
s. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control
of the Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.
t. Segment Reporting
As the Company's business activity primarily falls within a single business and geographical segment,
there are no additional disclosures to be provided in terms of Accounting Standard 17 on 'Segment
Reporting'.
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (i) Share capital

Authorised Shares
60,000,000 (Previous year 60,000,000) Equity shares of ` 10 each 6,000.00 6,000.00
6,000.00 6,000.00
Issued, subscribed and fully paid up Shares
40,300,577 (Previous year 40,300,577) Equity shares of ` 10 each fully paid up 4,030.06 4,030.06
Total issued, subscribed and fully paid up share capital 4,030.06 4,030.06
(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
Equity Shares
Particulars March 31, 2015 March 31, 2014
Number Value Number Value
` in Lacs ` in Lacs
At the beginning of the year 40,300,577 4,030.06 40,250,577 4,025.06
Issued during the year (refer note 22) - - 50,000 5.00
Outstanding at the end of the year 40,300,577 4,030.06 40,300,577 4,030.06
(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution
of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(c) Shares held by holding/ ultimate holding company and/ or their subsidiaries
Equity Shares
Name of Shareholder March 31, 2015 March 31, 2014
Number Value Number Value
` in lacs ` in lacs
Fortis Healthcare Limited*, the holding company 40,300,577 4,030.06 40,300,577 4,030.06
* Including 6 equity shares held by its nominees.
(d) Details of shareholders holding more than 5% shares in the Company

Equity Shares
Name of Shareholder March 31, 2015 March 31, 2014
No. of Shares % of Holding No. of Shares % of Holding
held held
Fortis Healthcare Limited*, the holding company 40,300,577 100.00% 40,300,577 100.00%
* Including 6 equity shares held by its nominees.
As per records of the Company, including its register of share holders/ members and other declarations received from shareholders regarding
beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
(e) Aggregate number of shares issued for consideration other than cash during the period of 5 years immediately preceding the reporting
date
The Company has issued 50,000 equity shares of ` 10 each fully paid up, pursuant to the scheme of amalgamation in the year ended March 31, 2014
(refer note 22).
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (ii) Reserves and surplus

Securities premium account
Balance as per the last financial statement 36,180.52 36,180.52
Closing balance 36,180.52 36,180.52
Surplus in the statement of profit and loss

Balance as per the last financial statements 17,450.22 30,391.38
Additions on account of amalgamation (refer note 22)
- Profit brought forward from the amalgamating company up to March - 4,629.98
31, 2012, pursuant to the order of Hon'ble High Court of Delhi dated
July 22, 2013
- Loss brought forward from the amalgamating company for the year - (11,864.25)
2012-2013, pursuant to the order of Hon'ble High Court of Delhi dated
July 22, 2013
Depreciation (refer note 3(a)) (net of deferred tax ` 186.95 lacs) (363.05) -
Less: Loss for the year (8,566.66) (5,706.89)
Net surplus in the statement of profit and loss 8,520.51 17,450.22
Total Reserves and surplus 44,701.03 53,630.74
4 (iii) Long-term borrowings

Secured
Term loan from banks (refer note 17(i)(a)) 22,416.67 13,800.00
Hire purchase loan from bank (refer note 17(i)(b)) - 4.52
Buyers' credit (refer note 17(i)(c)) 642.20 956.89
Finance lease obligations (refer note 17(i)(d)) 61.76 89.29
Deferred payment liabilities (refer note 17(i)(e)) 647.66 876.66
23,768.29 15,727.36
Unsecured
Deferred payment liabilities (refer note 17(ii)(a)) - 346.54
23,768.29 16,073.90
4 (iv) Deferred tax liabilities (net):

Deferred tax liability arising on account of :
Fixed assets: Impact of difference between tax depreciation and 13,853.27 13,456.05
depreciation/ amortization for financial reporting
Gross deferred tax liability 13,853.27 13,456.05
Deferred tax asset arising on account of:

Impact of expenditure charged to the statement of profit and loss in the 645.97 491.26
current period but allowed for tax purposes on payment basis
On carry forward business losses and unabsorbed depreciation 8,925.98 5,532.69
Provision for doubtful debt and advances 2,689.93 1,793.57
Others 70.99 14.06
Gross deferred tax asset 12,332.87 7,831.58
Net deferred tax liabilities 1,520.40 5,624.47
4 (v) Other long term liabilities

Security deposit 10.59 9.59
Capital creditors 162.28 379.02
Lease equalization reserve 1,040.51 673.30
1,213.38 1,061.91
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (vi) Long-term provisions

Provision for employees benefits
Provision for gratuity (refer note 10) 987.29 730.76
987.29 730.76
Other provisions
Provision for litigation (refer note 20) - 83.24
- 83.24
987.29 814.00
Provision for litigation
Opening balance 83.24 166.49

Less: reversed/ utilised during the year 83.24 83.25
Closing balance - 83.24
4 (vii) Short-term borrowings

Secured
Loan repayable on demand
-Bank overdraft (refer note 17(i)(f)) 0.71 -
0.71 -
Unsecured
Loans from related parties
- from holding company (refer note 17(ii)(b)) 81,080.89 70,686.17
81,081.60 70,686.17
4 (viii) Trade payables

Trade payables (refer note 11 for details of dues to Micro and Small 27,456.05 26,807.70
enterprises)
27,456.05 26,807.70
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (ix) Other current liabilities
Current maturities of long-term debt [refer note 17 (i) (a), (b), (c) and (e) and 4,516.88 6,752.87
17 (ii) (a)]
Current maturities of finance lease obligations [refer note 17(i)(d)] 27.29 29.91
Interest accrued and due on borrowings 10,672.15 42.20
Interest accrued but not due on borrowings 3.38 9,616.75
Deferred revenue* 14.88 8.33
Advances from patients 2,512.60 2,692.78
Capital creditors 1,558.73 1,204.06
Sundry deposits 98.60 117.24
Book overdrafts 855.66 1,608.37
Payable to related parties 4,284.45 2,931.89
Statutory payables 1,951.04 2,662.02
Lease equalization reserve 13.58 42.42
Technology renewal fund 133.89 309.71
Others 242.48 143.25
26,885.61 28,161.80
* Deferred revenue represents payment received in advance for fixed fees contracts (academic services) for which
services had not been rendered at the end of the reporting period.
4 (x) Short-term provisions

Provision for employees benefits
Provision for gratuity (refer note 10) 56.33 49.17
Provision for leave encashment 825.06 665.39
881.39 714.56
Others
Provision for wealth tax 5.52 3.46
208.49 41.91
1,089.88 756.47
Movement in provision for contingencies

Opening balance 38.45 -
Add: Additions on account of amalgamation (refer note 22) - 30.18
Add: provision made during the year 164.52 8.27
Closing balance 202.97 38.45
Note 4 (xi)(a)
Particulars Freehold land Building Leasehold improvements Plant & machinery Medical equipments Medical Equipment Furniture & fittings Computers Office equipments Vehicles Total
taken under finance lease
Gross Block
At April 1, 2013 977.75 1,919.73 1,055.32 1,545.73 13,767.11 224.23 1,565.91 1,132.66 307.80 266.87 22,763.11
Additions 9,349.84 5,588.73 112.69 386.13 20,668.65 - 1,782.56 565.67 781.67 201.63 39,437.57
Additions under amalgamation (refer note 22) - 66.37 2,775.83 1,715.64 12,412.34 - 698.27 789.77 532.32 452.38 19,442.92
Disposals - - 402.79 33.43 149.79 - 59.94 8.98 9.88 115.15 779.96
Other adjustments* - - - - - - - - - - -
At March 31, 2014 10,327.59 7,574.83 3,541.05 3,614.07 46,698.31 224.23 3,986.80 2,479.12 1,611.91 805.73 80,863.64
Additions - - 140.26 1,121.38 5,079.38 - 146.93 246.79 26.37 56.45 6,817.56
Disposals - - 348.53 721.26 3,059.48 - 301.91 201.10 86.75 84.84 4,803.87
At March 31, 2015 10,327.59 7,574.83 3,332.78 4,014.19 48,718.21 224.23 3,831.82 2,524.81 1,551.53 777.34 82,877.33
Depreciation
At April 1, 2013 - 204.52 411.15 405.67 4,654.04 41.49 468.54 462.93 188.82 111.54 6,948.70
Charge for the year - 88.57 754.81 286.73 4,218.29 32.04 522.56 392.93 151.90 109.96 6,557.79
Additions under amalgamation (refer note 22) - 0.92 746.13 196.96 1,708.00 - 175.27 189.10 88.80 70.99 3,176.17
Disposals - - 336.08 11.52 73.32 - 55.59 6.81 7.84 55.02 546.18
Other adjustments* - - - 0.07 - - - 3.93 (4.00) - -
At March 31, 2014 - 294.01 1,576.01 877.91 10,507.01 73.53 1,110.78 1,042.08 417.68 237.47 16,136.48
Charge for the year - 374.47 604.66 179.24 5,734.95 56.95 422.73 937.80 381.63 96.44 8,788.87
Disposals - - 210.41 39.71 636.31 - 108.64 118.74 21.54 30.66 1,166.01
At March 31, 2015 - 668.48 1,970.26 1,017.44 15,605.65 130.48 1,424.87 1,861.14 777.77 303.25 23,759.34
Net Block
At March 31, 2014 10,327.59 7,280.82 1,965.04 2,736.16 36,191.30 150.70 2,876.02 1,437.04 1,194.23 568.26 64,727.16
At March 31, 2015 10,327.59 6,906.35 1,362.52 2,996.75 33,112.56 93.75 2,406.95 663.67 773.76 474.09 59,117.99
* Other adjustments include necessary reclassifications and inter head transfers and adjustments to depreciation thereof
Notes:
1) The above assets include certain fixed assets leased pursuant to operating lease agreement (refer note 6(a)).
Note 4 (xi)(b)
Particulars Non compete fees License fee Software Goodwill Total
Gross Block
At April 1, 2013 1,550.00 360.90 502.14 43,176.43 45,589.47
Additions - - 1,526.80 - 1,526.80
Additions on amalgamation (refer note 22) - 1,500.00 508.73 3,122.35 5,131.08
Disposals - - 0.13 - 0.13
At March 31, 2014 1,550.00 1,860.90 2,537.54 46,298.78 52,247.22
Additions - - 427.80 - 427.80
Disposals - - 367.54 1,365.00 1,732.54
At March 31, 2015 1,550.00 1,860.90 2,597.80 44,933.78 50,942.48
Amortisation
At April 1, 2013 1,550.00 17.01 211.95 - 1,778.96
Charge for the year - 336.09 466.42 - 802.51
Additions on amalgamation (refer note 22) - 612.50 174.51 - 787.01
Disposals - - 0.09 - 0.09
At March 31, 2014 1,550.00 965.60 852.79 - 3,368.39
Charge for the year - 335.99 376.67 - 712.66
Disposals - - 81.48 - 81.48
At March 31, 2015 1,550.00 1,301.59 1,147.98 - 3,999.57
Net Block
At March 31, 2014 - 895.30 1,684.75 46,298.78 48,878.83
At March 31, 2015 - 559.31 1,449.82 44,933.78 46,942.91
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (xii) Non-current investments

Trade investments (valued at cost unless stated otherwise)
Investment in subsidiaries
Unquoted equity instruments
Fortis C-Doc Healthcare Limited (refer note 22) 622.85 622.85
4,060,637 (Previous year 4,060,637) Equity Shares of ` 10/- each, fully paid up
(Of the above, 3 shares (Previous year 3 shares) are held with nominee share holders)
Fortis Health Management (East) Limited (refer note 22) 4.40 4.40
44,000 (Previous year 44,000) Equity Shares of ` 10/- each, fully paid up
(Of the above, 6 shares (Previous year 6 shares) are held with nominee share holders)
-
Fortis Cancer Care Limited (formerly known as Fortis Health Management (South) 5.00 5.00
Limited)
50,000 (Previous year 50,000) Equity Shares of ` 10/- each, fully paid up
(Of the above, 6 shares (Previous year 6 shares) are held with nominee share holders) -
-
Birdie & Birdie Realtors Private Limited 7,725.00 -
10,000 (Previous year Nil) Equity Shares of ` 10/- each, fully paid up
(Of the above, 6 shares (Previous year Nil) are held with nominee share holders)
Quoted equity instruments

Fortis Malar Hospitals Limited (refer note 7) 0.01 0.01
11,752,402 (Previous year 11,752,402) Equity Shares of ` 10/- each fully paid up
Investment in associate companies

Unquoted equity instruments
Fortis Emergency Services Limited 2.45 2.45
24,500 (Previous year 24,500) Equity Shares of ` 10/- each fully paid up
Aggregate amount of investments 8,359.71 634.71
Note:
Aggregate amount of quoted investments - at cost 0.01 0.01
Aggregate amount of quoted investments - at market value 6,275.78 2,985.11
Aggregate amount of unquoted investments 8,359.70 634.70
4 (xiii) Long-term loans and advances

Unsecured, considered good
Loan to subsidiaries (refer note 21) 15,272.20 2,945.51
Loan to body corporates and others - 12,325.00
Capital advances 202.37 10,221.60
Security deposits 1,642.08 1,563.95
Advance tax and tax deducted at source (net of provision for taxation) 13,684.41 8,173.29
Balances with customs excise and other authorities 17.29 17.29
MAT credit entitlement 7,414.20 7,414.20
Technology renewal fund advance 359.44 -
Advances recoverable in cash or in kind or for value to be received 972.16 10.20
39,564.15 42,671.04
4 (xiv) Other non-current assets

Unsecured, considered good unless stated otherwise
Interest accrued but not due on loans and bank deposits 600.84 267.55
Unamortized finance charges 84.04 112.13
Bank deposits with original maturity of more than 12 months 582.06 478.46
Bank deposits held as margin money 17.50 53.76
1,284.44 911.90
Unsecured- considered doubtful
Interest accrued but not due on loans 1,553.71 -
Less: Provision for doubtful balances

Interest accrued but not due on loans 1,553.71 -
1,284.44 911.90
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (xv) Inventories (valued at lower of cost and net realizable value)
Medical consumables and drugs 1,704.58 2,048.09
Linen 100.53 82.14
Stores and spares 75.41 89.64
1,880.52 2,219.87
4 (xvi) Trade receivables

Outstanding for a period exceeding six months from the date they are due for
payment
Unsecured, considered good 3,896.02 3,704.22
Doubtful 6,840.75 4,722.58
10,736.77 8,426.80
Less: Provision for doubtful receivables 6,840.75 4,722.58
3,896.02 3,704.22
Other receivables
Unsecured, considered good 13,521.73 16,705.76
Doubtful 628.32 241.35
14,150.05 16,947.11
Less: Provision for doubtful receivables 628.32 241.35
13,521.73 16,705.76
17,417.75 20,409.98
4 (xvii) Cash and bank balances

Cash and cash equivalents
Balances with banks
- on current accounts 961.55 7,525.79
- on deposit accounts with original maturity of less than 3 months 472.40 1.00
Cash in hand 353.46 421.50
Cheques in hand 40.51 62.56
Other bank balances
Deposits with original maturity of more than 3 months but less than 12 months - 34.45
Deposits with original maturity of more than 12 months 2.21 11.79
Bank deposits held as margin money 107.30 5.11
1,937.43 8,062.20
4 (xviii) Short-term loans and advances

Loans to an associate 3,276.80 3,058.53
Loan to body corporates and others* 17,257.10 6,797.00
Advances recoverable in cash or in kind or for value to be received 4,428.06 3,670.87
Security deposits 120.82 145.54
Balances with customs excise and other authorities 136.22 47.50
Technology renewal fund advance 63.00 -
Gratuity fund - 46.51
Loan to employees 0.99 1.35
25,282.99 13,767.30
Unsecured- doubtful
Advances recoverable in cash and kind or for value to be received 303.51 287.53
Loan to body corporate 272.14 -
575.65 287.53
Provision for doubtful advances (575.65) (287.53)
25,282.99 13,767.30
March 31, 2015 March 31, 2014

` in lacs ` in lacs
* An unsecured advance of ` 10,000.00 lacs was given to a company in an earlier year against acquistion of immovable property which was
shown as capital advance under long term loans and advances in note 4(xiii). In accordance with revised agreement with that company, such
amount is now repayable with interest in September 2015. Accordingly the amount has been reclassified as loan to body corporates and
others under short term loans and advances in note 4(xviii), against which the Company has received ` 500.00 lacs subsequent to year end
and has also received post-dated cheque for balance amount including interest. Interest accrued on such loan upto March 31, 2015 amounting
to ` 1,473.53 lacs is included in interest accrued but not due on loans and bank deposits under Other current assets in note 4(xix).
4 (xix) Other current assets

Interest accrued on loans and bank deposits 1,490.62 199.51
Unamortized finance charges 28.09 47.28
Accrued operating income 3,992.24 3,501.61
Assets held for sale 0.53 0.53
5,511.48 3,748.93
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (xx) Revenue from operations

Sale of services
In patient 162,617.18 149,993.85
Out patient 30,951.13 26,982.32
Laboratory/ clinical services 22.88 62.28
Income from medical services 338.91 363.43
Management fees from hospitals (net of prior period reversal of ` 306.34 1,242.39
238.22 lacs (Previous year Nil))
Income from satellite centers 74.16 1.78
Income from clinical research 24.24 40.41
194,334.84 178,686.46
Less: Trade discounts 2,994.07 2,501.22
191,340.77 176,185.24
Sale of goods
Pharmacy 2,016.03 1,920.13
2,016.03 1,920.13
Other operating income

Income from academic services 91.47 40.72
Income from rent 168.73 137.05
Equipment lease rental 263.99 164.14
Export benefits (net of prior period reversal of ` 177.38 lacs (Previous 145.10 906.76
year Nil))
Sponsorship income 159.04 156.64
Scrap sale 46.19 29.74
Sale of plasma 11.62 8.74
Unclaimed balances and excess provisions written back 623.53 123.70
Miscellaneous income 522.52 435.38
2,032.19 2,002.87
195,388.99 180,108.24
4 (xxi) Other income

Interest on bank deposits 74.37 25.76
Interest on loans 4,851.83 7,812.63
Foreign exchange fluctuation gain (net) 15.59 -
Profit on sale of mutual funds (current investments) 164.80 185.94
Dividend income - 58.76
Miscellaneous income 23.14 24.33
5,129.73 8,107.42
4 (xxii) Increase in inventories of medical consumables and drugs
Inventory at the beginning of the year 2,048.09 862.01

Additions on account of amalgamation (refer note 22) - 1,435.47
Reduction on account of sale of business (refer note 19) (159.09) -
Inventories at the end of the year 1,704.58 2,048.09
184.42 249.39
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (xxiii) Employee benefits expense*
Salaries, wages and bonus 21,630.41 20,178.63
Gratuity expense (refer note 10) 450.80 132.57
Leave encashment 417.03 241.13
Contribution to provident and other funds 1,323.51 1,221.54
Staff welfare expenses 1,412.06 1,278.53
Recruitment and training 78.92 92.60
25,312.73 23,145.00
4 (xxiv) Other expenses*

Contractual manpower 2,538.37 2,388.45
Power, fuel and water 4,986.94 5,267.52
Housekeeping expenses including consumables 1,866.16 1,807.96
Patient food and beverages 2,429.11 2,436.29
Pathology laboratory expenses 6,826.71 6,040.02
Radiology expenses 389.55 206.78
Consultation fees to doctors 20,308.60 16,554.85
Professional charges to doctors 20,618.84 21,857.55
Hospital service fee expenses 42,016.50 38,979.88
Medical services expenses 321.73 487.21
Repairs and maintenance
- Building 471.95 356.19
- Plant and machinery 1,844.64 1,898.00
- Others 1,277.18 1,099.34
Rent
- Hospital buildings 1,597.88 1,457.39
- Equipments 431.57 401.66
- Others 885.88 1,107.91
Donations - 1.20
Legal and professional fee 951.23 941.81
Travel and conveyance 1,019.56 1,304.62
Rates and taxes 153.44 127.20
Printing and stationary 794.22 808.73
Communication expenses 390.23 372.42
Insurance 464.84 508.07
Marketing and business promotion 9,074.15 7,541.21
Wealth tax 7.95 4.64
Loss on sale of assets (net) 109.05 65.43
Payment to auditor
As auditor:
-Audit fee 49.44 44.00
-Limited review 32.02 24.00
- Tax audit fee 9.55 8.50
-Certification and other services 11.33 11.56
-Out of pocket expenses 9.93 9.01
Foreign exchange fluctuation loss (net) - 77.69
Bad debts and advances written off 152.39 602.50
Provision for doubtful debts 2,763.23 2,393.18
Provision for doubtful advances 1,985.53 109.15
Miscellaneous expenses 397.73 230.00
127,351.95 117,540.19
* Net of expenses capitalised (refer note 18)
March 31, 2015 March 31, 2014

` in lacs ` in lacs
4 (xxv) Finance costs

Interest expense:
-on term loans 2,504.79 2,503.17
-on cash credit 2.27 5.49
-others 11,932.44 11,332.09
14,439.50 13,840.75
Bank charges 480.28 469.11
Other borrowing costs:

- Finance charges 111.03 136.99
591.31 606.10
15,030.81 14,446.85
4 (xxvi) Depreciation and amortization expense

Depreciation of tangible assets 8,788.87 6,557.79
Amortization of intangible assets 712.66 802.51
Less: Adjusted with surplus in the statement of profit and loss (includes 550.00 -
deferred tax ` 186.95 lacs) [refer note 3(a)]
8,951.53 7,360.30
4 (xxvii) Exceptional items

Loan to subsidiary written off (refer note 23) (957.26) -
Profit on sale of undertaking (refer note 19) 1,819.85 -
862.59 -
4 (xxviii) Earnings/ (loss) per share (EPS)
Loss as per statement of profit and loss (8,566.66) (5,706.89)

Weighted average number of equity shares in calculating Basic and Diluted 40,300,577 40,300,577
EPS
Basic and diluted EPS (21.26) (14.16)
5. Related party Disclosure

i. Names of related parties and related parties relationship
Related Parties where control exists:-

(a) Ultimate Holding RHC Holding Private Limited (holding company of Fortis Healthcare Holdings
Company Private Limited)
(b) Holding Fortis Healthcare Holdings Private Limited (holding company of Fortis
Companies Healthcare Limited)
Fortis Healthcare Limited (‘FHL’)
(c) Subsidiaries Fortis Cancer Care Limited (formerly known as Fortis Health Management
(South) Limited)
Fortis Malar Hospitals Limited
Malar Stars Medicare Limited
Fortis C-Doc Healthcare Limited
Lalitha Healthcare Private Limited
Fortis Health Management (East) Limited
Birdie and Birdie Realtors Private Limited (w.e.f. May 7, 2014)
(d) Key Managerial Mr. Aditya Vij- Managing Director from August 29, 2013 to December 31,
Personnel 2014
(‘KMP’) Mr. Ashish Bhatia- Wholetime Director w.e.f. August 29, 2013
Additional related parties as per Companies Act, 2013
Mr. Rakesh Laddha- Chief Financial Officer w.e.f. August 14, 2014
Ms. Meetu Gulati- Company Secretary w.e.f. August 29, 2013
Mr. Daljit Singh- Non-Executive Director
Dr. Preetinder Singh Joshi- Non-Executive Director
Mr. Gagandeep Singh Bedi- Non-Executive Director w.e.f. October 1, 2014
Dr. S. Narayani- Non-Executive Director w.e.f. October 1, 2014
Mr. Sandeep Puri- Non-Executive Director upto October 1, 2014
Ms. Sabina Vaisoha- Non-Executive Director upto March 31, 2015
(e) Individuals Mr. Malvinder Mohan Singh
(directly or Mr. Shivinder Mohan Singh
indirectly) having
control or
significant
influence over
reporting
enterprise
Related parties with whom transactions have been taken place during the year:-
(f) Fellow Hiranandani Healthcare Private Limited
Subsidiaries Fortis Healthcare International Pte Limited
Fortis Asia Healthcare Pte Limited
Fortis Hospotel Limited
SRL Limited
Fortis Health Management (North) Limited***
Fortis Hoan My Medical Corporation
Escorts Heart Institute and Research Centre Limited
RWL Healthworld Limited (formerly known as Religare Wellness Limited)
Medsource Healthcare Private Limited
(g) Joint Venture Fortis Cauvery
(h) Associates Fortis Emergency Services Limited
(i) Enterprises over Religare Technologies Limited
which any person Chethana Foundation
mentioned at (d) Sunrise Medicare Private Limited
and (e) have
International Hospital Limited*
significant Kanishka Healthcare Limited*

influence Fortis Health Management Limited
Fortis Hospital Management Limited
Hospitalia Eastern Private Limited
Fortis Educational Society
Escorts Heart and Super Speciality Institute Limited*
Escorts Heart Centre Limited
Escorts Hospital and Research Centre Limited*
Escorts Heart and Super Speciality Hospital Limited
Fortis Global Healthcare Infrastructure Pte Limited
Religare Technova IT Services Limited
The schedule of related parties transactions is as follows:
` in lacs
Transactions details Year Year
Ended Ended
March 31, March 31,
2015 2014
Transactions during the year
Operating income (including Income from medical services, Management

fees from hospitals, Rental, Pharmacy income and other income)
SRL Limited (Fellow Subsidiary) 115.25 184.69

Kanishka Healthcare Limited* (Enterprise owned or significantly influenced by - 1.23
KMP or their relatives)
Lalitha Healthcare Private Limited (Subsidiary ) 52.68 150.77
Fortis Healthcare Limited (Holding Company) 38.17 15.69
Escorts Heart Institute and Research Centre Limited (Fellow Subsidiary) 25.80 11.24
Fortis C-Doc Healthcare Limited (Subsidiary) 8.77 23.37

Escorts Heart Centre Limited (Enterprise owned or significantly influenced by - 6.62
RWL Healthworld Limited (formerly known as Religare Wellness Limited) 113.75 54.71
(Fellow Subsidiary)
Fortis Health Management Limited (Enterprise owned or significantly 0.08 -
influenced by KMP or their relatives)
International Hospital Limited* (Enterprise owned or significantly influenced by 24.16 -
Expense incurred by the Company on behalf of

International Hospital Limited* (Enterprise owned or significantly influenced by 59.38 21.13
Sunrise Medicare Private Limited (Enterprise owned or significantly influenced - 1.01
by KMP or their relatives)
Fortis Healthcare Limited (Holding Company) 1,866.86 69.78
Fortis Hospotel Limited (Fellow Subsidiary) - 42.67

Fortis Health Management Limited (Enterprise owned or significantly - 15.90
Lalitha Healthcare Private Limited (Subsidiary ) - 1.60
Fortis Emergency Services Limited (Associate) - 0.06

Ended Ended
March 31, March 31,
2015 2014
Hiranandani Healthcare Private Limited (Fellow Subsidiary) - 0.45
Escorts Heart Centre Limited (Enterprise owned or significantly influenced by 2.21 -
Fortis Hospital Management Limited (Enterprise owned or significantly 115.89 -
Birdie and Birdie Realtors Private Limited (Subsidiary) 8.53 -
Expense incurred on behalf of the Company by

Fortis Healthcare Limited (Holding Company) 389.49 1,144.03

Fortis Hospotel Limited (Fellow Subsidiary) 1,084.66 1,262.55
International Hospital Limited* (Enterprise owned or significantly influenced by 1,250.54 528.14
Fortis Health Management (East) Limited (Subsidiary) - 2.36
Escorts Heart and Super Speciality Hospital Limited (Enterprise owned or 442.64 -
significantly influenced by KMP or their relatives)
Hiranandani Healthcare Private Limited (Fellow Subsidiary) 0.09 -
Lalitha Healthcare Private Limited (Subsidiary ) 7.41 -
Interest income on loans to

Fortis Emergency Services Limited (Associate) 453.50 193.27
Fortis Health Management (East) Limited (Subsidiary) 70.74 35.81
Fortis Cancer Care Limited (formerly known as Fortis Health Management 280.46 214.55
(South) Limited) (Subsidiary)
Birdie and Birdie Realtors Private Limited (Subsidiary) 1,553.71 -
Interest expense on loan taken from

Escorts Heart Institute and Research Centre Limited (Fellow Subsidiary) - 46.34
Fortis Healthcare Limited (Holding Company) 11,728.36 10,648.55

Malar Stars Medicare Limited (Subsidiary) - 322.36
Sale of fixed assets

Escorts Heart Institute and Research Centre Limited (Fellow Subsidiary) 0.75 -
Loans given
Fortis Emergency Services Limited (Associate) 450.60 1,174.00

Ended Ended
March 31, March 31,
2015 2014
-
Hospitalia Eastern Private Limited (Enterprise owned or significantly influenced 773.00
Loans received back

Fortis C-Doc Healthcare Limited (Subsidiary) - 305.30
Fortis Health Management (East) Limited (Subsidiary) 6.00 -
Loans taken
Loans repaid
Escorts Heart Institute and Research Centre Limited (Fellow Subsidiary) - 1,146.45
Malar Stars Medicare Limited (Subsidiary) - 6,209.10
Sale of Business Division

Fortis Healthcare Limited (Holding Company) (refer note 19) 4,000.00 -
Transfer of CWIP from

Professional charges to doctors

Consultation fees to doctors

Pathology laboratory expenses


SRL Limited (Fellow Subsidiary) 6,245.37 5,549.64
Fortis Healthcare Limited (Holding Company) 0.72 -
Hospital Service fee expense

Escorts Heart and Super Speciality Hospital Limited (Enterprise owned or 4,894.86 4,673.96
Escorts Hospital and Research Centre Limited* (Enterprise owned or - 2,154.06
Kanishka Healthcare Limited* (Enterprise owned or significantly influenced by - 4,163.71
International Hospital Limited* (Enterprise owned or significantly influenced by 23,376.85 15,753.36

Ended Ended
March 31, March 31,
2015 2014
Cost of Medical Services
Radiology expenses
Escorts Heart Institute and Research Centre Limited (Fellow Subsidiary) 0.18 -
Purchase of medical consumables

Hiranandani Healthcare Private Limited (Fellow Subsidiary) - 0.09
Medsource Healthcare Private Limited (Fellow Subsidiary) 238.82 139.99
RWL Healthworld Limited (formerly known as Religare Wellness Limited) 112.77 361.24
(Fellow Subsidiary)
Fortis Healthcare Limited (Holding Company) 0.13 -
Housekeeping expenses including consumables

Fortis Health Management Limited (Enterprise owned or significantly - 13.00
International Hospital Limited* (Enterprise owned or significantly influenced by - 24.25
Travel and conveyance expenses

Fortis Emergency Services Limited (Associate) 47.72 67.57
Rent paid
Chethana Foundation (Enterprise owned or significantly influenced by KMP or 20.22 20.22
their relatives)
Collection on behalf of company by

International Hospital Limited* (Enterprise owned or significantly influenced by 1,125.11 1,219.83

Escorts Hospital and Research Centre Limited* (Enterprise owned or - 3,904.47
Fortis C-Doc Healthcare Limited (Subsidiary) 0.97 -
Escorts Heart and Super Speciality Hospital Limited (Enterprise owned or 2.95 -
Sunrise Medicare Private Limited (Enterprise owned or significantly influenced 1.87 -
Corporate guarantee withdrawn

Fortis Asia Healthcare Pte Limited (Fellow Subsidiary) - 217,140.00
Fortis Cauvery (Joint Venture) 500.00 -

Ended Ended
March 31, March 31,
2015 2014
Collection by Company on behalf of

International Hospital Limited* (Enterprise owned or significantly influenced by - 0.25
Escorts Heart and Super Speciality Hospital Limited (Enterprise owned or - 18.23
Fortis Healthcare Limited (Holding Company) 5,410.63 28.90
` in lacs
Balance outstanding at the year end As at March 31, As at March
2015 31, 2014
Loans Recoverable
Birdie and Birdie Realtors Private Limited (Subsidiary ) 12,275.00 -
Fortis C-Doc Healthcare Limited (Subsidiary ) 489.67 153.63
Fortis Health Management (East) Limited (Subsidiary ) 636.92 424.18
Fortis Cancer Care Limited (formerly known as Fortis Health 1,870.62 2,367.70
Management (South) Limited) (Subsidiary)
Fortis Emergency Services Limited(Associates) 3,509.13 3,058.53
Loan Payable
Balance recoverable
Fortis Health Management Limited (Enterprise owned or significantly 26.16 1.08
Fortis Cancer Care Limited (formerly known as Fortis Health - -
Fortis Emergency Services Limited (Associate) - -
Hiranandani Healthcare Private Limited (Fellow Subsidiary) 31.30 12.23
Escorts Heart Institute and Research Centre Limited (Fellow 341.11 1,346.25
Subsidiary)
Fortis Cauvery (Joint Venture) 13.25 11.77
International Hospital Limited* (Enterprise owned or significantly 657.41 131.62
Kanishka Healthcare Limited* (Enterprise owned or significantly - 16.35
Sunrise Medicare Private Limited (Enterprise owned or significantly 3.92 2.05
Fortis Hospital Management Limited (Enterprise owned or - 142.43
RWL Healthworld Limited (formerly known as Religare Wellness 64.47 -
Limited) (Fellow Subsidiary)
Balance outstanding at the year end As at March 31, As at March

2015 31, 2014
SRL Limited (Fellow Subsidiary) 9.92 -
Birdie and Birdie Realtors Private Limited (Subsidiary) - -
Escorts Heart Centre Limited (Enterprise owned or significantly - 10.11
RWL Healthworld Limited (formerly known as Religare Wellness - 5.26
Fortis Hospotel Limited (Fellow Subsidiary) 38.52 -
-
Hospitalia Eastern Private Limited (Enterprise owned or significantly 773.00
Balance payable
Kanishka Healthcare Limited* (Enterprise owned or significantly - 851.36
Escorts Heart and Super Speciality Hospital Limited (Enterprise 1,032.21 5.12
owned or significantly influenced by KMP or their relatives)
Escorts Heart Institute and Research Centre Limited (Fellow 331.20 346.35
Subsidiary)
Escorts Heart and Super Speciality Institute Limited *(Enterprise - 813.21
owned or significantly influenced by KMP or their relatives)
Escorts Hospital and Research Centre Limited* (Enterprise owned or - 512.21
Medsource Healthcare Private Limited (Fellow Subsidiary) 44.86 12.11
RWL Healthworld Limited (formerly known as Religare Wellness 36.59 108.29
International Hospital Limited* (Enterprise owned or significantly 4,314.48 3,799.27
Religare Technova IT Services Limited (Enterprise owned or - 4.48
Fortis Emergency Services Limited (Associate) 1.83 -
Interest accrued and due/but not due on loans given

Fortis Cancer Care Limited (formerly known as Fortis Health 251.18 203.82
Birdie and Birdie Realtors Private Limited (Subsidiary) 1,696.61 -
Corporate guarantee given for loans availed by**

Lalitha Healthcare Private Limited (Subsidiary ) 1,700.00 1,700.00
Fortis Cauvery (Joint Venture) - 500.00
*During the previous year, Escorts Heart and Super Speciality Institute Limited (‘EHSSIL’), Escorts
Hospital and Research Centre Limited ('EHRCL') and Kanishka Healthcare Limited ('KHL'), subsidiary of
Religare Health Trust has been merged into another subsidiary of Religare Health Trust, International
Hospital Limited (‘IHL’).
**The loans availed by above companies against guarantee given have been used by the respective
companies for acquiring fixed assets and meeting working capital requirements.
***During the previous year, Hon’ble Delhi High Court of Delhi approved the scheme of amalgamation
(‘the scheme’) of Fortis Health Management (North) Limited (‘FHM(N)L’) with the Company. The
scheme became effective from September 1, 2013 with appointed date as April 1, 2012. (refer note 22).
6. Leases
a) Assets given on operating lease

The Company has sub-leased some portion of hospital premises and certain medical equipments and
computers. In all the cases, the agreements are further renewable at the option of the Company. There are
no restrictions imposed by lease arrangements and the rent is not determined based on any contingency.
The total lease income received / receivable in respect of the above leases recognized in the statement of
profit and loss for the year is ` 432.72 lacs (Previous year ` 301.19 lacs).
The total of future minimum lease income receivable under the non-cancellable operating leases is as
under:
(` in lacs)
Minimum lease payments :
Not later than one year 262.96 252.59
Later than one year but not later than five years 425.23 579.37
Later than five years - -
Details of capital assets given on non-cancellable operating lease are disclosed as under:
(` in lacs)
Gross Accumulated Net Gross Accumulated Net
Block Depreciation Block Block Depreciation Block
Medical Equipments 928.09 160.80 767.29 802.54 81.99 720.55
Computers 0.44 0.37 0.07 0.44 0.12 0.32
Total 928.53 161.17 767.36 802.98 82.11 720.87
b) Assets taken on operating lease

The Company has obtained certain office, hospital premises, other premises and certain medical
equipments on operating lease. In all the cases, the agreements are further renewable at the option of the
Company. There are no restrictions imposed by lease arrangements and the rent is not determined based
on any contingency. The total lease payment in respect of such leases recognized in the statement of
profit and loss for the year is ` 2,915.33 lacs (Previous year ` 2,966.96 lacs) and capitalized during the
year ` 709.54 lacs (Previous year ` 774.80 lacs).
Future minimum lease payment under non cancellable operating leases are as follows:
(` in lacs)
Minimum lease payments :
Not later than one year 1,701.23 1,542.27
Later than one year but not later than five years 3,664.98 3,209.87
Later than five years 631.22 1,177.44
Total 5,997.43 5,929.58
c) Assets taken on finance lease

The Company has finance leases for Cathlab equipment. The lease has terms of renewal and bargain
purchase option. However, there is no escalation clause. Each renewal is at the option of lessee. Future
minimum lease payments (MLP) under finance leases together with the present value of the net MLP are
as follows:-
(` in lacs)
Minimum Present Minimum Present
Lease value of Lease value of
Payments MLP Payments MLP
Not later than one year 41.88 27.18 41.88 29.90
Later than one year but not later than five 111.68 61.87 151.82 89.30
years
Later than five years - - - -
Total minimum lease payments 153.56 89.05 193.70 119.20
Less: amounts representing finance charges 64.51 - 74.50 -
Present value of minimum lease payments 89.05 89.05 119.20 119.20
7. Investments
Trade Investments includes 11,752,402 quoted Equity shares of Fortis Malar Hospitals Limited received
as a gift from International Hospital Limited which has been recorded at a nominal value of ` 1,000/-.
8. Capital and other commitments

(` in lacs)
Particulars As at March 31, 2015 As at March 31, 2014
Estimated amount of contracts remaining to be executed 1,914.99 592.54
on capital account [net of capital advances of ` 202.37
lacs (Previous Year ` 221.60 lacs)]
For commitments related to lease arrangements, refer note 6.
9. Contingent liabilities (not provided for) in respect of:

(` in lacs)
Description As at March As at March
31, 2015 31,2014
Claims against the Company not acknowledged as debts (in respect of 7,279.50 2,477.17
compensation demanded by the patients / their relatives for negligence).
The cases are pending with various Consumer Disputes Redressal
Commissions. Based on expert opinion obtained, the management
believes that the Company has good chance of success in these cases
Corporate guarantee given to bank in respect of financial assistance 1,700.00 2,200.00
availed by fellow subsidiary of the Company. None of the corporate
guarantee have been evoked by the Banks during the year as the fellow
subsidiary of the Company have complied with the loan covenants.
Deputy Commissioner of Income Tax has raised a demand on account of 257.58 -
disallowance of expenditure under Section 14A of the Income Tax Act,
1961 pertaining to assessment year 2012-13. Based on management
assessment, the Company believes that it has good chances of success in
this case.
Demand pertaining to financial year 2011-12 raised by Joint 157.08 -
Commissioner, Commercial Tax, West Bengal for Value Added Tax
(VAT) payable on medicines and foods that are being served to patients.
In response to the Assessment Order, the Company has filed a petition to
Description As at March As at March

31, 2015 31,2014
VAT Tribunal in the month of October 2014. The Tribunal has granted a
stay and has ordered to pay Rs. 10 lacs on Ad Hoc basis which will be
refunded in case the judgement is in the favour of the Company. The
affidavit in opposition has already been submitted by the West Bengal
Sales tax department but the Company is yet to submit its affidavit in
reply to the Tribunal. Based on management assessment, the Company
believes that it has good chances of success in these cases.
Jaipur Value Added Tax (VAT) department has raised a demand on 502.18 -
account of VAT payable on sale of implants to patients used in
procedures performed on them and demand on sale of food and
beverages sold to admitted patient. The order pertains to financial year
2011-12 and 2012-13. The Company has filed a Writ petition before
Jaipur High Court where Hon’ble court has granted stay on the matter.
Based on management assessment, the Company believes that it has
good chances of success in these cases.
Interest on Customs duty/ penalty for misdeclaration of imported goods, - 515.50
case for which was pending with Hon’ble Supreme Court of India. The
same has been decided in favour of the Company by Hon’ble Supreme
Court in the current year.
10. Disclosures under Accounting Standard - 15 (Revised) on ‘Employee Benefits’:

Defined Benefit Plan
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more
of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of
service. The Gratuity scheme in case of one of the hospital of the Company is funded with an insurance
Company in the form of a qualifying insurance policy and in case of other locations it is unfunded. The
Company also provides leave encashment, which is unfunded.
The following table summarizes the components of net employee benefit expenses recognized in the
statement of profit and loss and the funded status and amounts recognized in the balance sheet for the
respective plans:
Statement of profit and loss
Net employee benefit expense (recognized in employee cost/capitalize under Capital work in
progress)

` in lacs ` in lacs ` in lacs ` in lacs
(Unfunded) (Funded) (Unfunded) (Funded)
Current Service cost 191.83 29.29 233.6 19.69
Interest cost 63.57 15.72 54.93 14.06
Expected return of plan assets - (20.59) - (16.00)
Net actuarial loss/ (gain) recognized in 130.83 40.15 (137.48) (36.23)
the period
Reversal of excess provisions - -
Net benefit expenses 386.23 64.57 151.05 (18.48)
Actual return on plan assets - - - -
Balance sheet
Present value of defined benefit 1,037.88 241.91 779.93 182.95
obligation
Fair value of plan assets - 236.17 - 229.46
Surplus/(deficit) of funds (1,037.88) (5.74) (779.93) 46.51
Net asset/ (liability) (1,037.88) (5.74) (779.93) 46.51
Changes in present value of the defined benefit obligation are as follows:

Opening defined benefit obligation 779.93 182.95 393.04 -
Liability assumed on account of - - 351.31 182.22
amalgamation (refer note 22)
Liability deleted on slump sale (refer (39.77) - - -
note 19)
Current service cost 191.83 29.29 233.60 19.69
Interest cost on benefit obligation 63.57 15.72 54.93 14.06
Benefits paid (88.51) (25.98) (115.47) (12.82)
Actuarial loss/ (gain) recognized in the 130.83 39.93 (137.48) (20.20)
period
Closing defined benefit obligation 1,037.88 241.91 779.93 182.95
Change in fair value of assets are as follows:

Opening fair value of plan assets - 229.46 - -
Assets assumed on account of - - - 148.61
amalgamation (refer note 22)
Expected return on plan assets - 20.59 - 16.00
Contributions by employer - 12.32 - 61.64
Benefits paid - (25.98) - (12.82)
Actuarial gains / (losses) - (0.22) - 16.03
Closing fair value of plan assets - 236.17 - 229.46
Experience gain/(loss) adjustments on - - - -
plan assets
In case of Banglore Corporate Office , Anandpur, FHKI, Mulund, Bennarghatta Road, Cunningham
Road, Kalyan
Particulars, March 31, 2015 March 31, 2014
(Unfunded) (Unfunded)
Discount rate 7.75% 9.25%
Expected rate of return on plan assets - -
Expected rate of salary increase 10% for the first 3 years
8.00% starting from 1 April 2012 &
8% thereafter
Particulars, March 31, 2015 March 31, 2014

(Unfunded) (Unfunded)
Mortality table referred Indian Assured Lives Indian Assured Lives
Mortality (2006 -08) Mortality (2006-08)
(modified) Ult. (modified) Ult.
Withdrawal / Employee Turnover Rate
Up to 30 years 6.00%-30.00% 10.00%
Up to 40 years 2.00%-25.00% 5.00%
Up to 50 years 1.00%-20.00% 3.00%
Above 50 years 2.00% 2.00%
In Case of other locations

Discount rate 7.75% 7.75% 9.25% 9.25%
Expected rate of return on plan assets - 9.25% - 9.25%
3.75% to
Expected rate of salary increase 3.75% to 8.00% 3.75% 3.75%
7.50%
Indian Assured Indian Indian
Indian Assured Assured Assured
Lives
Lives Mortality Lives Lives
Mortality
Mortality table referred (2006-08) Mortality Mortality
(2006 -08) (2006-08) (2006-08)
(modified) Ult.
(modified) Ult. (modified) (modified)
Ult. Ult.
Withdrawal / Employee Turnover Rate
6.00% -
Up to 30 years 6.00%-30.00% 6.00% 6.00%
18.00%
2.00% -
Up to 44 years 2.00%-25.00% 2.00% 2.00%
6.00%
1.00% -
Above 44 years 1.00%-20.00% 1.00% 1.00%
2.00%
Experience histories for the current and previous year are as follows:
(` In lacs)
Particulars Year ending
March 31, March March 31, March 31, March
2015 31, 2014 2013 2012 31, 2011
Defined benefit obligation at the (1,257.83) (962.88) (393.04) (339.98) (297.57)
end of the period
Plan assets at the end of the period 236.17 229.46 - - -
Funded status (1,021.66) (733.42) (393.04) (339.98) (297.57)
Experience gain/ (loss) adjustment (7.93) 100.04 23.42 30.60 6.35
on plan liabilities
Experience gain/ (loss) adjustment (0.22) 8.18 - - -
on plan assets
Actuarial gain/ (loss) due to (162.83) 107.90 15.16 15.66 -
change on assumptions
The overall expected rate of return on assets is determined based on the market prices prevailing on that
date, applicable to the period over which the obligation is to be settled.
Notes:
a) The estimates of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.
b) The Company’s expected contribution to the fund in the next year is not presently ascertainable and
hence, the contributions expected to be paid to the plan during the annual period beginning after the
balance sheet date as required by Para 120 (o) of the Accounting Standard 15 (Revised) on Employee
Benefits are not disclosed.
11. Details of dues to Micro and Small Enterprises as per MSMED Act, 2006
Particulars March 31, March 31,

2015 2014
` in lacs ` in lacs
The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year:
-Principal amount due to micro and small enterprises 25.97 9.33
-Interest due on above - -
The amount of interest paid by the buyer in terms of section 16 of the - -
MSMED Act 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year
The amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the MSMED Act 2006.
The amount of interest accrued and remaining unpaid at the end of each - -
accounting year
The amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues as above are actually
paid to the small enterprise for the purpose of disallowance as a deductible
expenditure under section 23 of the MSMED Act 2006
The above information regarding dues to Micro and Small Enterprises have been determined to the extent
such parties have been identified on the basis of information available with the Company. This has been
relied upon by the auditors.
12. Particulars of Un-hedged Foreign Currency Exposure:
Particulars Amount
Import trade payables including USD 4.09 lacs (Previous year USD 7.91 lacs) ` 254.66 lacs
capital creditors (Previous year ` 474.94 lacs)
Buyers Credit EURO 2.05 lacs (Previous year EURO 4.30 lacs) ` 137.01
lacs(Previous year ` 355.52 lacs)
USD 10.69 lacs (Previous year USD 21.30 lacs) ` 666.63 lacs
lacs (Previous year ` 1278.98 lacs)
Deferred payment liabilities EURO Nil (Previous year EURO 0.06 lacs) ` Nil (Previous year `
4.63 lacs)
USD Nil (Previous year USD11.54 lacs) ` Nil (Previous year `
693.08 lacs)
Letter of credit EURO Nil (Previous year EURO 0.10 lacs) ` Nil (Previous year `
8.27 lacs)
13. Material consumed (including consumables)
Particulars 31-Mar-15 31-Mar-15 31-Mar-14 31-Mar-14

% of total ` in lacs % of total ` in lacs
consumption consumption
Indigenous* 100% 37,479.52 100% 37,490.78
Imported - - - -
Total 100% 37,479.52 100% 37,490.78
*Including consumables of ` 261.44 lacs (previous year ` 181.46 lacs) debited to housekeeping expenses.
Note: Material consumption consists of items of various nature and specifications and includes medical
consumables, pharmaceuticals etc. Hence, it is not practicable to furnish the item wise details.
14. Expenditure in Foreign Currency (on accrual basis)

` in lacs ` in lacs
Marketing and business promotion 545.08 511.54
Total 783.44 646.80
15. Value of imports calculated on CIF basis

` in lacs ` in lacs
Capital goods 1,433.62 3,711.21
Total 1,433.62 3,711.21
16. Earnings in Foreign Currency (on accrual basis)

` in lacs ` in lacs
Sale of services 6,813.03 6,702.05
Total 6,813.03 6,702.05
17. Borrowings
(i) Secured Loans
Long term borrowings:
Particulars Note March 31, March 31, March 31, March 31,
2015 2015 2014 2014
Non-
Non-Current Current Current
Current
Term loan from banks (a) 22,416.67 3,883.34 13,800.00 5,200.00
Hire purchase loans from bank (b) - 1.59 4.52 7.98
Buyers’ credit (c) 642.20 160.73 956.89 677.61
Finance lease obligations (d) 61.76 27.29 89.29 29.91
Deferred payment liabilities (e) 647.66 471.22 876.66 346.16
23,768.29 4,544.17 15,727.36 6,261.66
Short term borrowings:
Particulars Note March 31, 2015 March 31, 2014

` in lacs ` in lacs
Bank overdraft (f) 0.71 -
Total 0.71 -
a) Term loan of ` 15,000.00 lacs have been taken in two Tranches from ICICI Bank, ` 10,300.00 were
received during the year ended March 31, 2013 and rest ` 4,700.00 were received in the previous year.
The entire loan is secured by way of first pari-passu charge over moveable assets up to 1x cover and
second pari-passu charge over current assets and exclusive charge over DSRA/Fixed Deposit and carried
interest rate of base rate + 1.75%. Term Loan is repayable in 18 structured quarterly installments
beginning at the end of seven quarters from first drawdown dated March 29, 2013.
Year ` in lacs
8% in the 1st year 1,200.00
12% in the 2nd year 1,800.00
24% in the 3rd year 3,600.00
24% in the 4th year 3,600.00
32% in the 5th year 4,800.00
The facility of ` 13,800.00 lacs is outstanding as on March 31, 2015.
Term loan of ` 7,000.00 lacs from HDFC Bank is secured by way of first pari passu charge on the assets
(moveable and immoveable) of certain owned hospitals and equitable mortgage of those owned by
hospitals. These loans are further secured by corporate guarantee issued by Fortis Healthcare Limited and
carried interest rate of 10.6%. Term Loan is repayable in annual installments of ` 3,000.00 lacs at the end
of 12 months and ` 4,000.00 lacs at the end of 24 months from the date of disbursement. The said facility
has been fully paid during the year.
During the year, the Company has availed loan of ` 12,500.00 lacs from HDFC Bank which is secured by
way of first pari passu charge on the moveable fixed assets and current assets of the Company and
equitable mortgage of the property of certain hospitals owned by the Company. These loans are further
secured by corporate guarantee issued by Fortis Healthcare Limited and carried interest rate of base rate
of the bank+1.25%. Term Loan is repayable in 18 structured quarterly installments within a period of 60
months with repayment being start after 6 months from the date of disbursement (i.e. moratorium period
of 6 months). The facility of ` 12,500.00 lacs is outstanding as on March 31, 2015.
b) Hire purchase loans from bank are secured against hypothecation of the vehicles financed and carries
interest rate from 8.35% to 10.94%. The loan is repayable in equated monthly installments over four
years. However, the Company has made pre-payment of ` 6.39 lacs during the year and balance as on
March 31, 2015 is to be paid during the financial year 2015-16.
c) Buyer’s credit facility from HDFC Bank was taken in the year 2012-13 for finance of various medical
equipments to be imported. It carries interest @ (3% - 3.5%) + 6 months LIBOR and is repayable within
3 years from the date of import of medical equipment.
Out of total, facility amounting to ` 677.61 lacs carried interest at 2.55% to 2.79% and was secured
against each specific asset against which the facility was availed. The same has been repaid fully during
the year.
d) Finance lease obligation has been used for financing cathlab equipment and was availed during the year
ended March 2012. It carries interest rate of 10.52% and repayable in equated monthly installments over
seven years.
e) Deferred payment facility was taken in the financial year 2011-2012 and carries interest @ 9% per annum
for the first year and SBI base rate + 0.50% for subsequent years. Deferred credit payment facility is
secured by first charge by way of hypothecation of specific equipment of the Company. The loan is
repayable in two parts, one is in 20 structured quarterly installments commencing from April 2012 and
other one is in 20 structured quarterly installments commencing from May 2013.
f) The bank overdraft facility limit of `6,720.00 lacs has been taken from Axis Bank Limited chargeable to
interest at base rate + 1.50%, secured against the first charges on current assets of the Company. The
same is repayable on demand.
(ii) Unsecured Loans
Long term borrowings:
Particulars Note March 31, March 31, March 31, March 31,
2015 2015 2014 2014
Non-Current Current Non Current Current
Deferred payment liabilities (a) - - 346.54 521.12
Total - - 346.54 521.12
Short term borrowings:
Particulars Note March 31, 2015 March 31, 2014

` in lacs ` in lacs
Loan from holding Company (b) 81,080.89 70,686.17
Total 81,080.89 70,686.17
a) The facility has been taken from Elekta Limited during the previous year and carries interest rate at 6
months LIBOR + 2.75% for the full payment period of the facility. The facility is repayable in two parts,
50% payment will be in 15 months from the date of shipment or 12 months from the date of installation,
whichever is earlier and balance 50% payment will be in 24 months after the first payment. The facility has
been prepaid during the year.
Another facility is taken from Siemens Financial Services Limited for Oracle licenses. The loan is
repayable in 8 structured installments starting from August 2013 and has been fully paid during the current
year as per its term.
b) The loan from holding company (‘FHL’) was taken initially during the financial year 2011-12 and carries
interest at 13% to 13.75% p.a. and is repayable on March 31, 2016.
18. Capitalization of expenditure:
During the year, the Company has capitalised the following expenses to the cost of fixed asset/ capital
work in progress (CWIP). Consequently, expenses disclosed under the respective notes are net of amount
capitalised by the Company.
Particulars As at As at
March 31, 2015 March 31, 2014
` in lacs ` in lacs
Opening Balance (A) 454.03 204.85
Additions on account of amalgamation (B) (refer note 22) - 6,505.32
Employee benefits (C)

Salaries, wages and bonus 173.19 315.08
Total (C) 173.19 315.08
Other expenses (D)
Contractual manpower 14.38 13.92
Power, fuel and water 4.02 18.51
Housekeeping expenses including consumables - 18.01
Repairs and maintenance - 34.55
Rent 709.54 774.80
Printing & Stationery 0.03 -
Travel and conveyance 0.10 3.32
Communication expenses - 0.38
Insurance - 0.60
Total (D) 828.71 891.93
Total (E) (A+B+C+D) 1,455.93 7,917.18
Less: Capitalized during the year (F) - 7,463.15
Balance carried forward to Capital Work in Progress (G =E-F) 1,455.93 454.03
19. During the year ended March 31, 2015, pursuant to business transfer agreements entered into with Fortis
Healthcare Limited, the Company has transferred its Shalimar Bagh unit under slump sale transaction on
April 1, 2014. Details of assets and liabilities transferred are as under :
S.No. Particulars March 31, 2015

` in lacs
1 Net Fixed Assets 3,031.18
2 Goodwill 1,365.00
3 Net Current Assets (2,216.03)
4 Total Assets Transferred (1+2+3) 2,180.15
5 Sale Consideration by way of payment 4,000.00
6 Profit on Sale of Undertaking (5-4) (included under 1,819.85
Exceptional items)
20. The Deputy Commissioner of Customs had issued an assessment order in earlier year raising a demand of
` 166.49 in relation to import of medical equipments. The Company had filed an appeal with the Hon’ble
Supreme Court of India. The court had ordered for the stay and during the previous year court had asked
the Company to deposit a sum of ` 83.25 lacs with the customs authority. The Company had deposited the
amount with the customs authority and has also made a provision of `166.49 lacs. During the current year
Hon’ble Supreme Court of India has decided the case in the favour of the Company, hence the provision of
` 166.49 lacs has been reversed during the current year.
21. Details of loans given to subsidiaries:

(` in lacs)
Particulars Maximum Amount Closing Balance
Outstanding (Long term)
March 31, March 31, March 31, March 31,
2015 2014 2015 2014
Subsidiaries
Fortis Health Management (East) Limited 640.92 424.18 636.92 424.18
Fortis C-Doc Healthcare Limited 489.66 308.93 489.66 153.63
Fortis Cancer Care Limited (formerly known 2,857.87 2,379.41 1,870.62 2,367.70
as Fortis Health Management (South)
Limited)
Birdie and Birdie Realtors Private Limited 12,275.00 - 12,275.00 -
Total 16,263.45 3,112.52 15,272.20 2,945.51
The particulars of loans given as required to be disclosed by Section 186 (4) of Companies Act 2013 are as
below:
Name of the loanee Rate of Due date Secured/ March 31, March 31,
Interest unsecured 2015 2014
Fortis Health Management 12.50% March 31, 2017 Unsecured 636.92 424.18
(East) Limited
Fortis C-Doc Healthcare 13% March 31, 2017 Unsecured 489.66 153.63
Limited
Fortis Cancer Care Limited 10% March 31, 2017 Unsecured 1870.62 2,367.70
(formerly known as Fortis
Health Management (South)
Limited)
Birdie and Birdie Realtors 14% March 31, 2017 Unsecured 12,275.00 -
Private Limited
Total 15,272.20 2,945.51
The above loans have been given for meeting the working capital requirements and purchase of capital assets.
22. During the previous year, the Company and Fortis Health Management (North) Limited (‘FHM(N)L’) a fellow
subsidiary of the Company filed an application with Hon’ble Delhi High Court for merger of FHM(N)L into
the Company from an appointed date of April 1, 2012, with an objective of reducing administrative cost,
overhead, managerial and other expenditure and to bring the expertise, technology and facilities under one
roof. It would also simplify corporate structure which would provide management more scope to focus on
development of business of the companies.
Salient features of scheme of amalgamation of Fortis Health Management (North) Limited with Fortis
Hospitals Limited, the Company:-
i) The Scheme of amalgamation (‘the Scheme’) under sections 391 and 394 of the Companies Act,
1956, between the Company and Fortis Health Management (North) Limited (‘FHM(N)L’), was
approved by the Hon’ble High court of New Delhi, vide its order dated July 22, 2013. The Company
filed the Order of the Hon’ble High Court approving the scheme, with the Registrar of Companies on
September 1, 2013. Therefore the Scheme became effective from September 1, 2013 with appointed
date as April 1, 2012. The Scheme had already been approved by the shareholders of both the
Companies.
ii) FHM(N)L was engaged in the business of providing consultancy and development work for
establishment, promotion, maintenance, management, operation and conduct of healthcare and
related services and to purchase, lease or otherwise acquire, promote, own, establish, operate, run or
administer hospitals, clinics, nursing homes, chemist shops and all other kinds of healthcare centre(s)
etc. and as per the Scheme of amalgamation, the Company shall continue to carry on the business.
iii) In terms of Accounting Standard 14 – Accounting for Amalgamations notified under the Companies
(Accounting Standards) Rules, 2006, (as amended), the Scheme of Amalgamation was accounted for
under the ‘Pooling of Interest Method’, wherein all the assets and liabilities of FHM(N)L became,
after amalgamation, the assets and liabilities of the Company.
iv) Pursuant to the Scheme, the business of FHM(N)L had been transferred to the Company on a going
concern basis. Accordingly, all the assets, liabilities, rights, licenses, benefits, obligations etc. of
FHM(N)L, as on April 1, 2012, stand transferred to and vested in the Company.
v) As per the Scheme, the Company had allotted to the members of FHM(N)L 1 (one) equity share of
the face value of ` 10/- (ten) each of the Company, credited as fully paid up for every 1 (one) equity
shares of ` 10/- each held by the members of FHM(N)L in FHM(N)L. In terms of the scheme, on
transfer of various assets and liabilities of FHM(N)L to the Company as at the appointed date,
following adjustments had been made in the books of account of the Company:
Particulars ` in lacs
ASSETS
Non-current assets
Tangible assets 13,126.23
Intangible assets 4,552.56
Capital work-in-progress 7,441.01
25,119.80
Non-current investments 289.05
Long term loans and advances 1,340.88
26,749.73
Current assets
Current investments 516.45
Inventories 1,201.40
Trade receivables 10,669.42
Cash and bank balances 623.36
Short term loans and advances 110,020.61
Other current assets 2,868.72
125,899.96
Total Assets 152,649.69
LIABILITIES
Non-current liabilities
Long-term borrowings 1,504.61
Deferred tax liabilities (Net) 127.69
Particulars ` in lacs
Other long term liabilities 423.97
Long-term provisions 208.84
2,265.11
Current liabilities
Short-term borrowings 122,727.36
Trade payables 10,675.53
Other current liabilities 12,031.96
Short-term provisions 314.75
145,749.60
Total Liabilities 148,014.71
Total Net Assets 4,634.98
Less: Profit brought forward from the amalgamating Company as on the date of
amalgamation i.e. April 1, 2012 (4,629.98)
Total 5.00
Share Capital issued by the Company to the members of FHM(N)L 5.00
In view of the aforesaid amalgamation with effect from April 1, 2012, loss of ` 11,864.25 lacs has been
brought forward from the amalgamating company for the year 2012-2013.
23. Loan to subsidiary written off

The Company has provided loan amounting to ` 957.26 lacs to Fortis Cancer Care Limited (FCCL)
(formerly known as Fortis Health Management (South) Limited), wholly owned subsidiary of the
Company, for investment in M/s Fortis Cauvery, a partnership firm. During the current year, FCCL has
entered into a Memorandum of Understanding (MOU) dated August 31, 2014 to dissolve the said firm, as
the firm has incurred losses and FCCL’s investment is completely eroded. To stop further losses, the
operations of the firm are closed and assets have been sold as per the terms of MOU effective from
September 1, 2014.
In view of the above entire capital contribution of ` 306.00 lacs and loans advanced of ` 651.26 lacs till
the date of signing of MOU to the partnership firm have been written off by FCCL during the year.
In the light of above facts, the Company has written off the loan advanced to FCCL amounting to ` 957.26
lacs.
24. Corporate Social Responsibility

As per section 135 of the Companies Act, 2013 and rules therein, the Company is required to spend at
least 2% of average net profit of past three years towards Corporate Social Responsibility (CSR).
However, the Company has incurred losses in past three years hence the same is not applicable.
25. Previous year figures

Previous year figures have been regrouped / reclassified, where necessary, to conform to this year’s
classification.
Firm registration number: 301003E Fortis Hospitals Limited

Membership No. 93577 DIN 01845421 DIN 06881468

Membership No. A24618
Place: Gurgaon Place: Gurgaon

Date: May 27, 2015 Date: May 27, 2015

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Fortis Hospitals Limited

Balance Sheet as at March 31, 2015

Notes March 31, 2015 March 31, 2014

TOTAL 212,733.59 207,647.22

TOTAL 212,733.59 207,647.22

Summary of significant accounting policies 3

The accompanying notes are an integral part of the financial statements

As per our report of even date

Ashish Bhatia Gagandeep Singh Bedi

Meetu Gulati Rakesh Laddha

Place : Gurgaon Place : Gurgaon

Notes March 31, 2015 March 31, 2014

Loss for the year (8,566.66) (5,706.89)

Basic (21.26) (14.16)

Summary of significant accounting policies 3

The accompanying notes are an integral part of the financial statements

As per our report of even date

per Sandeep Sharma Ashish Bhatia Gagandeep Singh Bedi

Meetu Gulati Rakesh Ladda

Place : Gurgaon Place : Gurgaon

March 31, 2015 March 31, 2014

Cash flows from investing activities

Cash flows from financing activities

Net increase/ (decrease) in cash and cash equivalents (A + B + C) (6,161.71) 5,332.24

March 31, 2015 March 31, 2014

Components of cash and cash equivalents:

Summary of significant accounting policies 3

As per our report of even date

per Sandeep Sharma Ashish Bhatia Gagandeep Singh Bedi

Meetu Gulati Rakesh Laddha

Place : Gurgaon Place : Gurgaon

3. Summary of Significant Accounting Policies

b. Tangible fixed assets

c. Depreciation on tangible fixed assets

Assets Useful Lives

Changes in Accounting Policies

f. Impairment of tangible and intangible assets

Where the Company is the lessee

Where the Company is the lessor

Income from Satellite Centers

Income from Clinical Research

Income from Sponsorships

Income from Academic Services

Equipment Lease Rentals and Income from Rent

k. Unamortised finance charges

l. Foreign Currency Transaction

iii) Exchange differences

m. Retirement and other employee benefits

i) Contribution to provident fund

iii) Compensated absences

iv) Actuarial gain/ losses

o. Earnings per share

q. Cash and Cash Equivalents

March 31, 2015 March 31, 2014

4 (i) Share capital

(b) Terms/ rights attached to equity shares

(d) Details of shareholders holding more than 5% shares in the Company

March 31, 2015 March 31, 2014

4 (ii) Reserves and surplus

Surplus in the statement of profit and loss

Total Reserves and surplus 44,701.03 53,630.74

4 (iii) Long-term borrowings

4 (iv) Deferred tax liabilities (net):